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I have an older car and its current market value is very low – do I really need to purchase automobile insurance?

April 26, 2017automobile car Insurance low market Older purchase value

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I have an older car and its current market value is very low – do I really need to purchase automobile insurance?

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Almost all states have brought about compulsory car insurance laws that require drivers to have at least some auto liability insurance (Part A). Such laws were passed to ensure that victims of accidents are compensated when their losses are caused by someone else being negligent. Besides the minimum liability you may be required to purchase, many people with older cars decide not to purchase physical damage coverage. Often, the cost of repairing an older car is greater than its value. In these cases, your insurer will usually just “total” the vehicle and give you a check for its market value less minus the deductible. Many people forgo the Part D coverage because of the relatively low value of their automobiles.